Ringmetall shows operating strength in the first quarter despite special items

15.05.2018 / 07:05
The issuer is solely responsible for the content of this announcement.

Ringmetall shows operating strength in the first quarter despite special items

- Group revenues increase by 6.6 percent to EUR 28.4 million
- Earning burdened by one-time special effects of EUR 0.4 million
- EBITDA correspondingly lower than in the previous year at EUR 2.9 million

Munich, 15 May 2018 - Ringmetall AG (ISIN: DE0006001902), an internationally leading specialist in the packaging industry, continued to grow as planned in the first quarter of 2018. However, sustained high steel prices as well as one-time extraordinary expenses meant that the earnings development was below average dynamic compared to the further business development expected for 2018.

Group revenues rose by 6.6 percent to EUR 28.4 million (Q1 2017: EUR 26.7 million). At EUR 2.9 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were 10.8 percent down on the previous year (Q1 2017: EUR 3.2 million). The decline is mainly attributable to one-time extraordinary expenses of EUR 0.4 million, which were mainly incurred in connection with the planned change of stock market segment and the introduction of International Financial Reporting Standards (IFRS). Accordingly, the EBITDA margin was 10.3 percent below the previous year's level of 12.2 percent. Earnings before interest and taxes (EBIT) were also below the previous year at EUR 2.0 million (Q1 2017: EUR 2.4 million).

"In the first quarter, we again performed very well from an operational perspective," explains Christoph Petri, Spokesman of the Management Board of Ringmetall AG. " However, the planned change in the stock market segment, the related preparation of the prospectus and the transition to IFRS have resulted in additional costs, which have a one-off effect. We therefore regard these costs as a kind of entrance fee to the Regulated Market, from which we expect a significant added value for our company in the future. "

The key performance indicators for the first quarter of 2018 are as follows:

IFRS (in TEUR)

Q1 2018

Q1 2017

Deviation

Group revenues

28,429

26,663

6.6%

Gross profit

12,166

11.810

3.0%

Gross margin

42.8%

44.3%

EBITDA

2,939

3,295

-10.8%

EBITDA margin

10.3%

12.4%

EBIT

2,040

2,386

-14.5%

EBIT margin

7.2%

8.9%

The Industrial Packaging business unit performed very positively both in terms of revenues and in terms of volumes. The sustained high momentum is mainly attributable to the development in the German market. However, as in previous quarters, the persistently high steel price had a negative impact on gross profit compared with the previous year. On the currency side, there was still no easing in the exchange rates against the US dollar and the Turkish lira. Accordingly, the revenue contribution from the sales regions affected by this does not reflect the full operational strength of the respective subsidiaries compared with the previous year due to the translation effects that occur. This is especially the case with the US subsidiary Self Industries. Nonetheless, the division's revenue increased by 9.5 percent to EUR 24.9 million in the first quarter (Q1 2017: EUR 22.7 million) and was thus even higher than the company's internal budget planning. At EUR 3.2 million, EBITDA was 7.9 percent below the previous year's level (Q1 2017: EUR 3.4 million). The EBITDA margin was accordingly 12.7 percent (Q1 2017: 15.1 percent). The decrease is largely attributable to the one-off effects from the planned change in the stock market segment und the transition to IFRS, which were incurred on the cost side in the holding company and the Industrial Packaging division. On the other hand, the introduction of new production planning software during the course of 2017 had a positive effect, which further reduced the expenditure for overtime and temporary work in comparison with the previous year.

In the Industrial Handling business unit, revenues from internally developed products continued to rise. Of particular note was the sale of stabilizers, which continued to gain momentum. After a successful test phase, newly developed arrester hooks for a major customer from the agricultural machinery industry also went into series production. As expected, revenues of the division were down by 9.7 percent to EUR 3.6 million (Q1 2017: EUR 4.0 million). At EUR 0.4 million, however, EBITDA was 66.0 percent up on the previous year (Q1 2017: EUR 0.3 million), which corresponds to an EBITDA margin of 11.7 percent after 6.4 percent in the same period of the previous year.

The Management Board of the Company is unchanged in its outlook for the development of revenues and earnings for the current financial year 2018. Further information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.

Ringmetall is an internationally leading specialist in the packaging industry. The Industrial Packaging business segment offers highly secure gasket and locking systems for the chemical, the petrochemical and the pharmaceutical industry as well as the food industry. The Industrial Handling business segment develops application-optimized vehicle accessory parts for the handling and transport of packaging units. Besides its headquarters in Munich, Ringmetall has worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands, as well as in China and the USA. On a global scale, Ringmetall generates revenues of more than EUR 100 million per year.

15.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.